FAQ - Mortgage Bankers

Mortgage Bankers

1. Who is a mortgage banker under NRS 645E?

A mortgage banker is any person who, directly or indirectly, holds himself or herself out as being able to:

  • Buy or sell notes secured by liens on real property; or
  • Make loans secured by liens on real property using his or her own money; and
  • Negotiate, originate, or make or offer to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and
  • Does not engage in any other act or transaction described in the definition of “mortgage broker”, as set forth in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS.

The term includes a wholesale lender. For additional information concerning wholesale lenders, please see the separate Wholesale Lender under NRS 645E FAQs page.


The term does not include a person who makes a loan secured by a lien on real property using his or her own money if any portion of the money that is used to make the loan is provided by another person who acquires ownership of or a beneficial interest in the loan.

Real property includes both residential and commercial property.
(NRS 645E.100)

 

2. Who is required to be licensed as a mortgage banker under NRS 645E?

Any person who wishes to engage in any activity meeting the statutory definition of “mortgage banker” with respect to residential or commercial property is required to first obtain a license as a mortgage banker under NRS 645E unless the person is exempt from licensure under NRS 645E.150 and holds a certificate of exemption under NRS 645E.160. For additional information concerning exemptions and obtaining a certificate of exemption, see the separate Certificates of Exemptions tab under the FAQs page.

3. How do I apply for a mortgage banker license?

Residential or Residential and Commercial
To obtain a residential mortgage banker license under NRS 645E, an applicant must submit its application to the Division through the NMLS utilizing the MU-1 Form. See Instruction for submitting a complete MU-1 Form through NMLS.


Please refer to the Nevada Mortgage Banker License Company New Application Checklist and the Nevada Mortgage Banker License Description on NMLS for submission requirements.


Additional information concerning the requirements to obtain a residential mortgage banker license and application materials may be obtained through the NMLS.

 
Commercial Only
To obtain a mortgage banker license under NRS 645E to conduct commercial mortgage activity only, an applicant must meet all of the above requirements, but may submit its application and fees directly to the Division. The application and further instructions may be obtained by contacting the Division at (775) 684-7060.
(NRS 645E.200; NAC 645E.203; NAC 645E.210)

 

4. Who is a “qualified employee”?

Every licensed mortgage banker must have a qualified employee at each location licensed with the State of Nevada Division of Mortgage Lending.

A qualified employee is a natural person who is designated by a mortgage banker to act on behalf of the mortgage banker and supervise the conduct of the business of the mortgage banker and the mortgage agents and other staff members employed by the mortgage banker at the licensed office location.  A qualified employee must be approved by the Commissioner.

To be considered for approval by the Commissioner, a natural person as a qualified employee must:

  • Be licensed and in good standing as a mortgage agent;
  • Be designated by a mortgage banker to act on behalf of the mortgage banker and supervise the conduct of the business of the mortgage banker and the mortgage agents and other staff members or employed by the mortgage banker at the licensed office location;
  • Be present at the licensed office location for which he or she is the qualified employee the majority of the time that the office is open to the public;
  • Meet the requirements of the S.A.F.E. Mortgage Licensing Act; and
  • In the immediately preceding five years, have at least two years of verifiable experience in the business of lending money for real estate mortgages.

To designate or change the designation of a qualified employee, the Designation of Qualified Employee Form must be completed and submitted to the Division. The form can be found on the Mortgage Bankers page on the Division’s Website.
(NAC 645E.030; NAC 645E.310; NAC 645E Adopted Regulation 126-16)

 

5. Does Nevada have a “brick and mortar” requirement to obtain a license as a mortgage banker?

Yes, with an exception for wholesale lenders under 645E.  (See FAQs for Wholesale Lenders Under NRS 645E.)  A company must establish and maintain a physical office location in Nevada in order to become licensed as a mortgage banker. A mortgage banker must also maintain a license for its home/main/corporate office. A license must also be obtained for each additional branch office location from which a mortgage banker will conduct mortgage banker activity on Nevada real property.

A mortgage banker shall post each license in a conspicuous place in the office for which the license is issued.
(NRS 645E.200; NRS 645E.220)

 

6. Does Nevada permit a mortgage banker to conduct business using an assumed or fictitious name (DBA)?

Yes. However, the mortgage banker must file with the county clerk in which the business is being conducted a certificate stating the assumed or fictitious name under which business will be conducted. The mortgage banker must file a certified copy of the certificate with the Division and receive from the Division a license or certificate of exemption indicating the fictitious name. A licensee may only conduct business in the name that appears on its license.


A mortgage banker may conduct business using more than one fictitious name only if the mortgage banker obtains a separate license for each fictitious name under which he or she intends to do business. A mortgage banker who conducts business in Nevada using more than one fictitious name is responsible for the conduct of each qualified employee, mortgage agent, and other employee associated with the mortgage banker regardless of the license or name under which the conduct takes place.
(NRS 602; NAC 645E.240)

 

7. Is a license required to conduct mortgage banker activity related to commercial real estate?

Yes. A mortgage banker license is required for any person that, directly or indirectly, does any of the following:
A person who, directly or indirectly holds himself or herself out as being able to:

  • Buy or sell notes secured by liens on real property; or
  • Make loans secured by liens on real property using his or her own money

A person who, directly or indirectly:

  • Negotiates, originates or makes or offers to negotiate, originate or make commercial mortgage loans as an agent for or on behalf of an institutional investor; and
  • Holds himself or herself out as a wholesale lender

Real property includes residential and commercial property.

A person who engages in both commercial and residential mortgage banker activity must submit its application to the Division through NMLS.

A person who only engages in commercial mortgage banker activity should contact the Division to obtain the application package at (775) 684-7060.
(NRS 645E.100)

8. How long must a licensed mortgage banker maintain its records for examination by the commissioner? Also, what must be maintained?

Each mortgage banker must retain records of all of its completed mortgage transactions for a period of at least four years after the date of the last activity relating to the transaction.

Each mortgage banker must retain applications for mortgages that were denied or withdrawn for a period of at least one year or as otherwise required by federal law.

Each mortgage banker must keep and maintain at all times at each location where the mortgage banker conducts business in this State complete and suitable records of all mortgage transactions made by the mortgage banker at that location. Each mortgage banker must also keep and maintain at all times at each location all original books, papers and data, or copies thereof; clearly reflecting the financial condition of the business of the mortgage banker.

“Complete and suitable records” is defined in NAC 645E.355

Records may be maintained in an electronic format if the records are made available to the Commissioner or his or her designee in the required format that allows complete access to all records and ensures that the Commissioner or his or her designee has the ability to download and print, from all office locations of the mortgage banker, any or all of the records. In addition to other requirements, a mortgage banker must provide any or all records maintained in an electronic format in printed form upon request of the Commissioner or his or her designee within 24 hours after a request is made.

(NRS 645E.350; NAC 645E.355; NAC 645E.360; NAC 645E Adopted Regulation 126-16)

9. Must a mortgage banker file a monthly report of all closed transactions?

Yes. Each mortgage banker shall submit to the Commissioner each month, on a form approved by the Commissioner, a report of the mortgage banker’s activity for the previous month. The report must:

  • Specify the volume of loans made by the mortgage banker for the month or state that no loans were made in that month;
  • Include any information required pursuant to the regulations adopted by the Commissioner; and
  • Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.

Monthly Activity Reports (MARs) must be submitted as an e-mail attachment in Excel Format (Excel 1997-2003) as the Division’s database cannot accept a newer version. Instructions for Filing Monthly Activity Reports as well as the Monthly Activity Report Form can be found on the Mortgage Bankers page of the Division’s Website.
[NRS 645E.350(2); NAC 645E.350]

 

10. Must a mortgage banker submit proposed advertisement to the Commissioner for approval?

Although mortgage bankers are not required to submit advertisements to the Commissioner for approval, all advertisements must meet the requirements set forth in NAC 645E.285.

In addition, a copy of each item of advertising material that was published or distributed by or on behalf of the mortgage banker, in the format in which the material was published or distributed, must be maintained or readily accessible at each place of business of the mortgage banker.
(NAC 645E.285; Adopted Regulation 126-16NAC 645E.355)

 

11. Is a mortgage banker license required to purchase mortgage loans on the secondary market?

The Division does not interpret NRS 645B or NRS 645E to require licensure for an institution that only buys closed loans in a bona fide secondary market transaction. Such activity may, however, bring about other licensing or registration requirements such as filing requirements with the State of Nevada Secretary of State or Department of Taxation, or local business licensing authorities.

12. Are branch locations required to be licensed?

Yes. If a mortgage banker will conduct business in this State at one or more branch offices, the mortgage banker must apply for a license for each such branch office.
(NRS 645E.200)

 

13. I’m licensed as a mortgage banker and want to add a branch. What is the process to obtain licensure for a new branch?

If the applicant maintains an NMLS record, the mortgage banker must complete and submit the Branch Form (MU-3) application through NMLS, pay the application fee, and submit the following documentation to the Division before the Division will accept the application.

  • A qualified employee that is a licensed mortgage agent and meets the requirements in NAC 645E.310 must be designated. 
  • The applicant must have been examined by the Commissioner and received a satisfactory rating during the preceding twelve months or submit a request for a waiver.

If the applicant conducts only commercial mortgage activity and does not maintain an NMLS record, the applicant should contact the Division directly at (775) 684-7060 to obtain the branch license application.

A license for a branch office will only be issued in the name in which the mortgage banker is licensed to conduct business at his or her principal office.

 

An application for a license for a branch office shall be deemed abandoned if the applicant fails to respond, within 30 calendar days of the date after the request or on or before a later date set by the Commissioner, to any written request by the Division for information or records required in connection with the investigation and evaluation of the qualifications and sitability for licensure of the applicant, its qualified employee or, if applicable, its control persons.
[NRS 645E.200(2); NRS 645E.280; NAC 645E.220; NAC 645E Adopted Regulation 126-16]

 

 

14. Are there any exemptions from the licensing requirements for a residential mortgage broker or residential mortgage banker?

Yes. NRS 645B.015 and NRS 645E.150 provide several qualifications that a person may meet to be exempt from the licensing requirements for a mortgage broker or mortgage banker. However, any person seeking to conduct business under one of the exemptions must file an application for a certificate of exemption from the Commissioner by contacting the Division at (775) 684-7060.

 

15. How do I apply for a certificate of exemption from the licensing requirements under NRS 645B or NRS 645E?

A person claiming an exemption under NRS 645B.015 or NRS 645E.150 that only conducts commercial (non-residential) mortgage activity or does not employ any individual who must be licensed as a residential mortgage loan originator must submit its application for a certificate for exemption directly to the Division. The application may be obtained by contacting the Division at (775) 684-7060 and requesting the certificate of exemption application for Non-NMLS filers.

A person claiming an exemption under NRS 645B.015 or NRS 645E.150 that conducts residential mortgage activity or employs any individual who must be licensed as a residential mortgage loan originator must submit its application for a certificate for exemption through the NMLS to the Division. Additional information concerning the certificate of exemption application process can be obtained at the NMLS Website.

 

16. What special requirements exist if I am a mortgage banker acting as a mortgage servicer for loans that I made under my own license?

In addition to all other requirements, a mortgage banker who acts as a mortgage servicer in connection with one or more mortgage loans which the mortgage banker made or arranged under his or her license as a mortgage banker must file annually with the Commissioner:

  • a complete schedule of the ranges of costs and fees charged to a borrower by the mortgage banker for the activities of the mortgage banker related to mortgage servicing; and
  • file quarterly, directly with the Commissioner or through the Registry to the Commissioner, a report of the mortgage servicing activity that the mortgage banker performs in this State on loans that the mortgage banker made or arranged under his or her license as a mortgage banker

(NAC Adopted Regulation R126-16 §3)

17. Does the annual fee for supervision replace an examination fee?

No. The annual fee for supervision is a separate fee charged and collected from each mortgage banker whose annual volume of loans reported to the Commissioner is at least $10,000,000. A mortgage banker whose annual volume of loans reported to the Commissioner is less than $10,000,000 will not be assessed a fee for supervision.
(Click here for the Fee for Supervision Calculator)

All mortgage bankers are charged a fee of $60 per hour for any examination, audit, investigation or hearing conducted pursuant to NRS 645E. The Commissioner may also charge a fee equivalent to the estimated or actual fee charged to the Division for the time of an attorney required in any examination, investigation or hearing conducted pursuant to NRS 645E.

(NAC 645E.320 Adopted Regulation R126-16 §17)

If you have any further questions, please contact the Division at (702) 486-0782.